LifeMD™ Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

On May 17, 2021, LifeMD, Inc. (NASDAQ: LFMD) announced the granting of an equity award to a new employee as an inducement for their hiring. The award comprises options to purchase 75,000 shares at an exercise price of $7.73, matching the stock's closing price on the grant date. Vesting occurs in three equal annual installments over three years, contingent on continued employment. This grant is in compliance with Nasdaq Listing Rule 5635(c)(4) and is outside the company's 2020 Equity and Incentive Plan.

Positive

• Inducement grant of 75,000 stock options enhances employee retention.
• Options granted at the stock's closing price, potentially aligning employee interests with shareholder value.

Negative

• None.

NEW YORK, May 17, 2021 (GLOBE NEWSWIRE) -- LifeMD, Inc. (“the Company”) (NASDAQ: LFMD), a leading direct-to-patient telehealth company, today announced that the Compensation Committee of the Company’s Board of Directors granted an equity award to a new employee.  The equity award was an inducement material to the employee’s acceptance of employment with the Company. The award was granted outside of the Company’s 2020 Equity and Incentive Plan (but consistent with its terms) and approved on May 17, 2021, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employee received options to purchase an aggregate of 75,000 shares of LifeMD, Inc. common stock. The options have an exercise price of $7.73, which is equal to the closing price of LifeMD common stock on May 17, 2021, the grant date of the award. The options will vest in three equal installments annually over a 3-year period that commences on the date of grant, subject to the employee’s continued employment with LifeMD on such vesting dates. The options have a five-year term.

About LifeMD
LifeMD, Inc. is a rapidly growing direct-to-patient telehealth company, offering cash-pay virtual medical care across all 50 states. LifeMD’s telemedicine platform enables virtual access to affordable and convenient medical treatment from licensed providers and, when appropriate, prescription medications and over-the-counter products delivered directly to the patient's home. To learn more, visit www.LifeMD.com

Cautionary Note Regarding Forward Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. While we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to LifeMD, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.

Company Contact                                
LifeMD, Inc.        
Marc Benathen, CFO
Email Contact        

Investor Relations Contact
Ashley Robinson
LifeSci Advisors, LLC
arr@lifesciadvisors.com  

FAQ

What was the purpose of LifeMD's equity award announced on May 17, 2021?

The equity award was granted as an inducement material to a new employee's acceptance of employment.

How many shares were included in LifeMD's equity award on May 17, 2021?

The equity award included options to purchase 75,000 shares of LifeMD common stock.

What is the exercise price for the stock options granted by LifeMD?

The exercise price for the stock options is $7.73, equal to the closing price on the grant date.

When will the stock options granted by LifeMD vest?

The options will vest in three equal installments annually over a three-year period.

What regulatory compliance did LifeMD adhere to in granting the equity award?

The award was granted in accordance with Nasdaq Listing Rule 5635(c)(4).